e-4007 (Employment and labour)
Original language of petition: English
Petition to the Minister of National Revenue
- The majority of the approximately 11,000 Rural and Suburban Mail Carriers (RSMC) employed by Canada Post are required to use their own vehicles to deliver mail;
- The cost of fuel has risen dramatically over the past few months;
- The current maximum "reasonable allowance rates" set by the Canada Revenue Agency ($0.61 for the first 5,000 km and $0.55 for all additional km) is not sufficient to cover the cost of operating a vehicle with the current fuel prices; and
- This is creating a situation where some Canada Post RSMC employees are forced to use their wages to cover part of the cost of using their vehicle to deliver mail for Canada Post.
Response by the Deputy Prime Minister and Minister of Finance
Signed by (Minister or Parliamentary Secretary): The Honourable Chrystia Freeland
Currently, the tax-exempt per-kilometre allowance limit is 61 cents per kilometre for the first 5,000 kilometres driven and 55 cents for each additional kilometre (these amounts are 4 cents higher in the territories). These amounts reflect the key cost components of owning and operating an automobile, which include fuel costs but also depreciation, financing, licenses/insurance and maintenance. The limit is reviewed annually against inflation to ensure that it continues to roughly reflect the average costs involved in business driving. Any changes to cost components that arise during a year will typically be announced in December and reflected in the limit that applies in the following year.
Although the tax-exempt per-kilometre allowance limit represents the maximum amount that an employer can deduct as business expenses, employers may opt to pay a different allowance amount to the employee. If the allowance is considered to be reasonable then it would be tax-free for the employee. Otherwise, it is a taxable benefit and has to be included in the employee's income.
Alternatively, employers may choose to deduct reimbursement of actual automobile expenses incurred by the employee in the course of employment instead of using the prescribed limit. This approach would provide the most accurate account of automobile expenses incurred by employees, especially when cost components fluctuate significantly. Employees can also deduct motor vehicle expenses in respect of their work-related driving (subject to conditions) net of all rebates, motor vehicle allowances, and reimbursements for motor vehicle expenses the employee received that are not included in their income.
- Open for signature
- May 11, 2022, at 8:40 a.m. (EDT)
- Closed for signature
- June 10, 2022, at 8:40 a.m. (EDT)
- Presented to the House of Commons
-
Lisa Marie Barron
(Nanaimo—Ladysmith)
June 20, 2022 (Petition No. 441-00626) - Government response tabled
- September 20, 2022
Only validated signatures are counted towards the total number of signatures.
Province / Territory | Signatures |
---|---|
Alberta | 550 |
British Columbia | 838 |
Manitoba | 196 |
New Brunswick | 166 |
Newfoundland and Labrador | 78 |
Northwest Territories | 2 |
Nova Scotia | 178 |
Ontario | 1360 |
Prince Edward Island | 21 |
Quebec | 1175 |
Saskatchewan | 128 |
Yukon | 1 |